President Bola Tinubu has signed the ₦54.99 trillion 2025 Appropriation Bill into law.
He approved the budget in his office at the State House, Abuja, on Friday, February 28, in the presence of principal officers of the National Assembly and other top government officials.
The National Assembly passed the bill on Thursday, February 13, after Tinubu requested an increase from the initial ₦49.7 trillion.
Lawmakers ultimately approved a spending plan higher than the ₦54.2 trillion initially proposed by the president.
The additional funding is expected to come from increased revenues from agencies such as the Federal Inland Revenue Service and the Nigeria Customs Service.
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The budget prioritises security, infrastructure, education, and health, including a $200 million allocation to cushion the impact of recent U.S. health aid reductions.
It is based on key economic assumptions, including a crude oil production target of 2.06 million barrels per day at $75 per barrel.
The government also projects an exchange rate of ₦1,500 to the U.S. dollar and aims to cut inflation from 34.8 per cent to 15 per cent within the year.
Tinubu has also outlined a tax reform plan aimed at boosting revenue and stabilising the economy. The proposal includes increasing the value-added tax (VAT) to 12.5 per cent by 2026 while exempting essential goods like food and medicine.
Additionally, the government plans to redistribute VAT revenues to favour states that generate more, a move that has sparked debate over regional economic disparities.
At ₦54.99 trillion, the 2025 budget is nearly double the ₦27.5 trillion approved for 2024.